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NVIDIA & 2 Profitable Stocks to Buy Now for Explosive Upside
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Key Takeaways
NVDA has a 63.7% net profit margin and nearly 95% expected earnings growth for the current year.
Micron posts a 63.8% net profit margin, with expected current-year earnings growth of 135.3%.
Sandisk has a 56.5% net profit margin and almost 201% expected earnings growth for the current year.
Investors should favor companies that generate strong returns after accounting for all operating and non-operating expenses. Therefore, investors generally prefer profitable businesses over money-losing ones. To evaluate a company’s profitability, investors often use profitability ratios to gauge its ability to generate consistent and sustainable earnings.
In this context, NVIDIA Corporation (NVDA - Free Report) , Micron Technology (MU - Free Report) , and Sandisk Corporation (SNDK - Free Report) stand out as the most profitable stocks, supported by strong net income ratios and upside potential.
Why the Net Income Ratio is Important for Investors
The net income ratio is a key indicator of a company's overall profitability. It reflects the percentage of net income relative to total sales revenues. The net income ratio helps assess a firm's ability to cover operating and non-operating expenses with revenues. A higher net income ratio usually implies a company can generate sufficient revenue and manage all business functions effectively.
Key Stock Selection Criteria in the Research Wizard
The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.
Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well.
Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company's solid profitability.
Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy.
These few parameters have narrowed the universe of more than 7,685 stocks to only 16.
Here are three of the 16 stocks that qualified for the screening:
NVIDIA
NVIDIA is a leading AI infrastructure company operating across global markets. NVDA’s 12-month net profit margin is 63.7%. Its expected earnings growth rate for the current year is nearly 95% (read more: Micron vs. NVIDIA: Which AI Stock Is the Better Buy After Earnings?).
Micron
Micron provides semiconductor memory and storage products across the United States, Asia, Europe and global markets. MU’s 12-month net profit margin is 63.8%. Its expected earnings growth rate for the current year is 135.3%.
Sandisk
Sandisk develops and sells NAND flash-based storage solutions worldwide. SNDK’s 12-month net profit margin is 56.5%. Its expected earnings growth rate for the current year is almost 201%.
View the Zacks #1 Rank List
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NVIDIA & 2 Profitable Stocks to Buy Now for Explosive Upside
Key Takeaways
Investors should favor companies that generate strong returns after accounting for all operating and non-operating expenses. Therefore, investors generally prefer profitable businesses over money-losing ones. To evaluate a company’s profitability, investors often use profitability ratios to gauge its ability to generate consistent and sustainable earnings.
In this context, NVIDIA Corporation (NVDA - Free Report) , Micron Technology (MU - Free Report) , and Sandisk Corporation (SNDK - Free Report) stand out as the most profitable stocks, supported by strong net income ratios and upside potential.
Why the Net Income Ratio is Important for Investors
The net income ratio is a key indicator of a company's overall profitability. It reflects the percentage of net income relative to total sales revenues. The net income ratio helps assess a firm's ability to cover operating and non-operating expenses with revenues. A higher net income ratio usually implies a company can generate sufficient revenue and manage all business functions effectively.
Key Stock Selection Criteria in the Research Wizard
The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.
Zacks Rank equal to #1: Whether the market is good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well.
Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company's solid profitability.
Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy.
These few parameters have narrowed the universe of more than 7,685 stocks to only 16.
Here are three of the 16 stocks that qualified for the screening:
NVIDIA
NVIDIA is a leading AI infrastructure company operating across global markets. NVDA’s 12-month net profit margin is 63.7%. Its expected earnings growth rate for the current year is nearly 95% (read more: Micron vs. NVIDIA: Which AI Stock Is the Better Buy After Earnings?).
Micron
Micron provides semiconductor memory and storage products across the United States, Asia, Europe and global markets. MU’s 12-month net profit margin is 63.8%. Its expected earnings growth rate for the current year is 135.3%.
Sandisk
Sandisk develops and sells NAND flash-based storage solutions worldwide. SNDK’s 12-month net profit margin is 56.5%. Its expected earnings growth rate for the current year is almost 201%.